COMWEL

Loan types & eligibility

• Loan services for medical expenses, medical care expenses for parent, funeral expenses, wedding expenses, and education expenses for children: Available to workers who have been working at a workplace for at least 3 months as of the day he/she applies for a loan(for daily-employed workers, the number of days shall be 45 days or more within 90 days from the date when he/she submit the Declaration of Labor Details in the form of Annex 7 of Enforcement Decree of the Employment Insurance Act), whose monthly average wages are KRW 2.51 million or less as of 2019
  - Income conditions of irregular workers(i.e. period-based, short-term, seconded and daily) are not applied.
• Loan services for living expenses to make up for wage decrease : This loan is an expense for some workers to earn a living, whose wages were decreased due to the management issues at a workplace. Available to the workers who meet all the following conditions are:
  • ⓐ Workers who have been working for over 6 months at a workplace as of the date when a loan application is submitted
  • ⓑ Workers whose wages have been reduced for 3 months or more due to management issues at a workplace, and whose monthly average wages during the 3 months prior to the wages being decreased were decreased by 30% or more, compared to the wages during the 3 months prior to the date when a loan application is submitted.
  • ⓒ Workers whose monthly average wages are KRW 1.76 million or less as of 2019 as of the date when a loan service application is submitted.
• Small loan services for living expenses : This loan is an expense for some workers to earn a living, whose wages were decreased due to business structure issues at a workplace, including workers taking some time off because of personal matters and seasonal businesses. Available to the workers who meet all the following conditions:
  • ⓐ Workers who have been working at a workplace for at least 3 months as of the day he/she applies for a loan(for day workers, the number of days shall be 45 days or more withing 180 days from the date when he/she submit the Declaration of Labor Details in the form of Annex 7 of Enforcement Decree of the Employment Insurance Act)
  • ⓑ Workers whose monthly average wages were decreased by 30% or more, compared to ones before the date when a loan application is submitted
  • ⓒ Workers whose wages have been reduced and whose monthly average are KRW1.76 million or less as of 2019
• Loan services for wage-in-arrears living expenses : any incumbent workers of workplaces(not) in operation(For day workers in construction, the number of days shall be 30 days or more within 180 days from the date when he/she submit the Declaration of Labor Details in the form of Annex 7 of Enforcement Decree of the Employment Insurance Act). In order to claim the expenses, workers shall have their wage-in-arrears for a month or more within a year since the loan application date. Also, their annual incomes(including their spouse‘s incomes) shall be KRW 55.4 million or less as of 2019.
  - Income conditions are not applied to daily workers in construction.
• Loan Services for employer to pay overdue wages : If an employer is in arrears of wages, etc. for any employee due to his or her temporary financial difficulties or other grounds prescribed by Ordinance of the Ministry of Employment and Labor, the Minister of Employment and Labor may, upon the employer’s application, provide him or her with loans necessary to pay the overdue wages, etc.

Loan application deadline

• For medical expenses : within a year upon the incurrence and bearing of medical care expenses or the start day of medical care by the workers or their dependent(s)(as registered on the health insurance card or the certificate of medical benefits)
• For wedding expenses : Before or after 90 days from the day the workers or their dependent(s) got married, or within 90 days upon the day when the workers submit the declaration of marriage.
• For funeral expenses : within 90 days upon the day of the death of workers, their spouses, or any of the workers‘ or their spouse‘s parents or grandparents
• For medical care for parents : within 90 days upon the day of issuing medical certificates of senile diseases for any of the workers’ or their spouse’s parents or grandparents
• For educational expenses for children : Within the period during which the workers’ children attend high school
• For living expenses to make up for wage decrease : Within 10 days while causes for application are still ongoing or upon the end date of causes for application
• For Small living expenses : within 6 months upon the date when causes for application occur
• For wage-in-arrears living expenses : before the wage-in-arrears status is resolved, within a year from the date of wage-in-arrears
  • Interest rate/Reimbursement conditions : 2.5% per annum/ 3-year reimbursements in installments following a 1-year grace period(for small loan service for living expenses, 1-year reimbursements in installments following a 1-year grace period)
  • Loan limit : KRW10 million each by type of loan(The loan will be provided within KRW 10million for medical care for parents, 5 million annually per workers‘ parent or grandparent, 5 million annually for education expenses per workers‘ child within the limit of 10 million, 12.5 million annually for wedding expenses and 2 million for small living expenses)
    - The limit is KRW20 million when the application asks for 2 or more loans.